The United States is a global leader in the international trade game. Billions of dollars worth of goods come into and out of American ports every day, linking the country to markets across the world. Electronics and vehicles, food and machinery, clothes the United States imports or exports nearly everything you can imagine.
But what are the largest U.S. trading partners? Those which purchased the most from America and those that sold the most to it?
Let’s dive a little deeper into the countries that spin America’s trade wheels and how businesses can leverage import export data from Siomex, one of the top trade data providers around, to gain an inside look at these worldwide trade relationships.
Canada
When it comes to trade, Canada is America’s best friend across the street. The countries not only share a border, but they also have a rich economic relationship that has remained rock solid for decades.
Canada is the largest source of U.S. energy imports, such as oil and natural gas, but it’s also a major recipient of U.S.-made products. On the other side of the equation, the U.S. exports cars, machinery, electronics and food products to Canada.
Because they are close to one another, transport costs are low and trade can pass unimpeded. You can even see how intertwined their economies are — when one prospers, the other often does as well.
A car maker in Detroit might depend on engine parts from Canada, while a grocery store in Canada probably needs fresh fruit from California.
Mexico
Mexico, another neighbor of the US whose trade is very important. This trade flow has become even more robust and friction-free with the USMCA agreement, which replaced NAFTA.
Mexico sends vehicles, machinery, farm products and electronics to the U.S. In exchange, it imports fuel, grains and machinery from America.
A lot of American companies locate their factories in Mexico, because that makes it cheaper to produce goods than in the United States yet the company has kept its trade routes relatively short and efficient.
And then consider an iPhone components can be designed in the United States, assembled in Mexico and sold back in both the United State's and Mexicans markets. That’s how linked modern trade has become.
China
It’s not surprising that China is one of America’s leading trading partners. For the past several decades, China has been hailed as the “factory of the world,” churning out everything from fashion to electronics.
Most of what Americans buy in stores, anyway, is “Made in China,” consisting of toys and gadgets and household products and machinery. In exchange, the U.S. sells agricultural goods, cars and technology to China.
The relationship has ebbed and flowed amid trade tensions and tariffs, but China remains a crucial trading partner for the U.S.
For example, when you purchase a smartphone in New York City it may have been assembled in China but feature components designed in Silicon Valley. That’s globalization in action!
About Japan: The Innovation and Technology powerhouse
For decades, Japan has been one of America’s most consistent trading partners, offering high-quality goods and technology.
The U.S. imports cars, machinery and electronics from Japan — think Toyota, Honda and Sony. Japan, on the other hand, purchases American agricultural products, aircraft and machinery.This partnership demonstrates how two advanced economies can collaborate to share innovation and resources. A Toyota car sold in Texas, for example, may contain software or design features that originated in California.
Germany
Germany and precision, engineering expertise that is what comes to mind. Germany is the U.S.'s largest European trade partner.
The U.S. imports vehicles, machinery and equipment, medical devices and pharmaceuticals, and chemicals from Germany. Germany, meanwhile, imports planes, pharmaceuticals and data processing machines from the U.S.
These two countries have a trade relation of mutual trust, quality and innovation. German automakers including BMW and Mercedes have huge operations in the U.S., illustrating how closely linked these two economies are.
South Korea
South Korea is home to another Asian economic powerhouse and has a robust trading relationship with the United States.
It sends electronic goods, cars and machinery to the United States, while the U.S. ships planes, farm products and chemicals to South Korea.
The trade relationship is kept alive by the American love of products that carry the names of companies such as Samsung, Hyundai and LG major players in every household.
United Kingdom
That bond is based on more than mere numbers it’s grounded in shared history, culture and values.
The U.K. ships pharmaceuticals, vehicles and machinery to the U.S., which sends aircraft, technology products and energy goods back in return.
It is also powered by heavy investments a lot of American companies do business in London, and the same holds true in reverse for British firms that have made themselves felt in New York and California.
India
India’s trade links with the United States have surged in recent years. The South Asian nation is emerging as a force in technology, pharmaceuticals and textiles.